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12th Annual Conference of the International Group for Lean Construction - Helsingør, Denmark - 2004

Perspectives on Non-Value Added Activities: The Case of Piece-Rate in the Swedish Construction Industry

Lasse Saukkoriipi¹

¹Master of Science, Building Economics and Management, Chalmers University of Technology, Sven Hultins gata 6, SE-412 96 Goteborg, Sweden, +46 (0)31-7721964, lasse.saukkoriipi@bem.chalmers.se

Abstract

One strategy to reduce the costs of building projects is to reduce non-value added activities. This paper describes the concept of non-value added activities by using three separate theoretical concepts: lean production, activity-based costing and management, and poorquality costing. The piece-rate system is one part of many building projects that includes several non-value added activities. These piece-rate related activities are used as a case to elucidate how the three concepts can affect the amount of non-value added activities.

Keywords

Non-value added activity, lean production, activity based costing and management, poorquality costing, piece-rate, building project

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Reference in APA 7th edition format:

Saukkoriipi, L.. (2004). Perspectives on Non-Value Added Activities: The Case of Piece-Rate in the Swedish Construction Industry. In Bertelsen, S., & Formoso, C. T. (Eds.), 12th Annual Conference of the International Group for Lean Construction.

Shortened reference for use in IGLC papers:

Saukkoriipi, L.. (2004). Perspectives on Non-Value Added Activities: The Case of Piece-Rate in the Swedish Construction Industry. IGLC12.

Founded in 1993, the IGLC is an international network of researchers from practice and academia in architecture, engineering, and construction (AEC) who feel that the practice, education, and research of the AEC industry have to be radically renewed in order to respond to the global challenges ahead.